United Leasing Corp. v. Miller

263 S.E.2d 313, 45 N.C. App. 400, 1980 N.C. App. LEXIS 2651
CourtCourt of Appeals of North Carolina
DecidedMarch 4, 1980
Docket7914SC458
StatusPublished
Cited by91 cases

This text of 263 S.E.2d 313 (United Leasing Corp. v. Miller) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Leasing Corp. v. Miller, 263 S.E.2d 313, 45 N.C. App. 400, 1980 N.C. App. LEXIS 2651 (N.C. Ct. App. 1980).

Opinion

ERWIN, Judge.

We note at the outset that plaintiff has abandoned its third assignment of error that the trial court erred in declining to hear or determine the plaintiff’s motion for post-judgment relief under G.S. 1A-1, Rule 60 (b)(6), of the Rules of Civil Procedure. Questions raised by assignment of error in appeals from trial tribunals but not then presented and discussed in a party’s brief are deemed abandoned. Rule 28(a) of the Rules of Appellate Procedure; State v. Wilson, 289 N.C. 531, 223 S.E. 2d 311 (1976). Thus, our review is limited to the propriety of the trial court’s dismissal of plaintiff’s complaint for failure to state a claim upon which relief can be granted and the trial court’s treatment of defendants’ motion for summary judgment as moot.

“The test on a motion to dismiss for failure to state a claim upon which relief can be granted is whether the pleading is legally sufficient. 11 Strong, N.C. Index 3d, Rules of Civil Procedure, § 12, p. 294. A complaint may be dis *404 missed on motion filed under Rule 12(b)(6) if it is clearly without merit; such lack of merit may consist of an absence of law to support a claim of the sort made, absence of fact sufficient to make a good claim, or the disclosure of some fact which will necessarily defeat the claim. Hodges v. Wellons, 9 N.C. App. 152, 175 S.E. 2d 690 (1970). For the purpose of a motion to dismiss, the allegations of the complaint are treated as true. Smith v. Ford Motor Co., 289 N.C. 71, 221 S.E. 2d 282 (1976). A complaint is sufficient to withstand a motion to dismiss where no insurmountable bar to recovery on the claim alleged appears on the face of the complaint and where allegations contained therein are sufficient to give a defendant notice of the nature and basis of plaintiff’s claim so as to enable him to answer and prepare for the trial. Cassels v. Ford Motor Co., 10 N.C. App. 51, 178 S.E. 2d 12 (1970).”.

Industries, Inc. v. Construction Co., 42 N.C. App. 259, 263-64, 257 S.E. 2d 50, 54 (1979). Defendants contend that the order of dismissal was proper, because there is an absence of law to support a claim of the sort made. We hold that the trial court erred in dismissing plaintiff’s claim on the ground that it failed to state a claim upon which relief can be granted.

In Insurance Co. v. Holt, 36 N.C. App. 284, 244 S.E. 2d 177 (1978), we held that claims for relief for attorney malpractice are actions sounding in contract and may properly be brought only by those who are in privity of contract with such attorneys by virtue of a contract providing for the attorney’s employment. In Holt, supra, a general contractor had sought indemnity from attorneys who had certified title to Chicago Title Insurance Company, which subsequently issued title insurance policies covering the condominium units built and sold by the owner. The general contractor had executed lien waiver forms agreeing to indemnify Chicago Title should it incur any liability as a result of the existence of any unpaid subcontractors who might assert mechanics liens having priority over the insured deeds of trust. A materialman filed a claim which was adjudicated to have priority over the insured deed of trust. Chicago Title satisfied the judgment and sued the general contractor based upon the indemnity agreements contained in the lien waivers. The general contractor impleaded the attorneys, alleging their violation of an affirmative duty to determine whether there were unpaid materialmen or subcontractors.

*405 While rejecting tort as a basis of liability for attorney malpractice, we intimated that if properly alleged in a complaint, a party not in direct privity of contract with an attorney could recover if he could show that he was a third-party beneficiary of the attorney-client employment contract. In doing so, we pointed out that:

“The complaint contained no allegation that LLA, which is alleged to have employed the appellees to certify title to Chicago Title, had any intent to benefit the appellant or owed him any duty which would be fulfilled by such certification. Neither are there any allegations in the complaint that the appellees promised to, or did in fact, certify the title to the appellant. The intention of the parties to the contract of employment determines whether the plaintiff is a mere incidental beneficiary thereof. Here, the allegations of the complaint do not indicate the parties intended the appellant to be anything more than a mere incidental beneficiary, and as such he cannot maintain a claim for relief upon a breach of contract merely because he would receive a benefit from its performance or because he is injured by the breach thereof. Matternes v. City of Winston-Salem, 286 N.C. 1, 209 S.E. 2d 481 (1974). Thus, the trial court properly allowed the ap-pellees’ motion to dismiss.”

Insurance Co. v. Holt, 36 N.C. App. 284, 290-91, 244 S.E. 2d 177, 181-82 (1978).

Despite the liberal nature of the concept of notice pleadings, we hold that plaintiff’s complaint does not state a claim of relief based on the theory of the third party beneficiary contract doctrine.

A claim for relief must still satisfy the requirements of the substantive lawé which gave rise to the pleadings, and no amount of liberalization should seduce the pleader into failing to state enough to give the substantive elements of his claim. Sutton v. Duke, 277 N.C. 94, 176 S.E. 2d 161 (1970).

To establish a claim based on the third party beneficiary contract doctrine, a complaint’s allegations must show: (1) the existence of a contract between two other persons; (2) that the contract was valid and enforceable; and (3) that the contract was *406 entered into for his direct, and not incidental, benefit. Trust Co. v. Processing Co., 242 N.C. 370, 88 S.E. 2d 233 (1955). Plaintiffs complaint contains none of these essential allegations. It leaves to conjecture that which must be stated. Thus, it fails to state a claim based on the third party beneficiary contract doctrine. Nevertheless, we hold that entry of the 12(b)(6) dismissal order was improper.

In the line of cases since our decision in Insurance Co. v. Holt, supra, we have re-examined the rule prohibiting recovery in tort by a third person not in privity of contract with a professional person for negligence in the performance of his employment contract with his client, even though such negligence was the proximate cause of a foreseeable injury to the third person. Thus, we have recognized a cause of action in negligence arising from the negligent breach of a common law duty of care flowing from the parties’ working relationship. Industries, Inc. v. Construction Co., 42 N.C. App. 259, 257 S.E. 2d 50 (1979), and Davidson and Jones, Inc. v. County of New Hanover, 41 N.C. App. 661, 255 S.E. 2d 580 (1979). In disavowing the privity requirement as a condition to recovery in all cases, quoting from Prosser, Torts 4th Ed., § 93, p. 662, we opined:

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Bluebook (online)
263 S.E.2d 313, 45 N.C. App. 400, 1980 N.C. App. LEXIS 2651, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-leasing-corp-v-miller-ncctapp-1980.